Fleet

Icelandair operates a single type fleet of Boeing 757 aircraft in its international network. The type fits extremely well with Icelandair‘s Route Nework. Also, a single-type fleet creates significant cost efficiency in terms of maintenance and training for crew and engineers. The Group invests considerably yearly in its fleet, in order to sustain and improve passengers‘ flight experience.

The Group´s fleet is the largest asset in the balance sheet and the core operating resource. The fleet at the end of December 2014 comprised a total of 37 aircraft, of which 28 were owned by the Company.

In the summer of 2015 the number of aircraft used by Icelandair will rise from 21 to 24.

Aircraft type

Icelandair

Cargo

Loftleiðir

Air Iceland

Group fleet31.12.14

Of wich own

Of wich leased

Ch. as of 31.12.13

B757 200

20

2

2

24

19

4

1

B757 300

1

1

1

0

B767 300

2

2

2

-1

B737 700

1

1

1

0

B737 800

2

2

2

0

Fokker F-50

5

5

5

0

Dash 8-200

2

2

2

0

Total

21

2

7

7

37

26

9

0

A contract with Boeing was signed in February 2013 confirming an order of sixteen 737 MAX8 and 737 MAX9 aircraft, with an option to buy an additional eight aircraft. The delivery of the first aircraft is scheduled for early 2018. The order was for nine 737 MAX8 aircraft, with a seating capacity of 153 passengers, and seven 737 MAX9 aircraft, with a seating capacity of 172 passengers. For comparison, Icelandair's Boeing 757-200 aircraft used in the Company's international Route Network will seat 183 passengers. Boeing 757-200 aircraft will continue in use, as they have proven extremely well suited for the route network extending to Europe and North America.

The new aircraft will enlarge the fleet and improve both flexibility and the potential for further growth. Their range will permit them to fly to destinations in North America and Europe, opening new possibilities for increased flight frequency and an increased number of destinations, particularly in the wintertime, which will reduce the seasonal fluctuations in the Company's operations. The commitment resulting from the confirmed orders, according to Boeing's list prices, amounts to USD 1.6 billion. The actual purchase price has not been disclosed.